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I refer to the report, “China’s pension fund doubles offshore exposure in quest for higher returns” (September 3).

As China’s national pension reserve diversifies its sizeable asset allocation, Hong Kong stands to benefit. Hong Kong’s role as a gateway between mainland China and global markets is often taken for granted. Much of the discussion seems to revolve around one assumption: Hong Kong should not be left behind. But should we be asking instead whether Hong Kong is efficient enough to deploy such long-term capital?

Investment cost should be a crucial consideration for a mega pension fund. According to the report, offshore investment assets held by the National Social Security Fund reached 580.02 billion yuan (US$86.4 billion) at the end of 2025. Even a seemingly modest investment cost of 0.1 per cent per year would amount to 580 million yuan per year, before taking investment returns into account. While the pension fund is sovereign wealth, it ultimately serves as a basic financial anchor for generations of ordinary Chinese as the population ages.